REPORTABLE BUSINESS SEGMENTS

3 Months Ended

Jun. 30, 2022

REPORTABLE BUSINESS SEGMENTS

REPORTABLE BUSINESS SEGMENTS

10.REPORTABLE BUSINESS SEGMENTS

Just Energy has two business segments: the mass market segment and the commercial segment. The mass markets segment includes customers acquired and served under the Just Energy, Tara Energy, Amigo Energy and Terrapass brands. Marketing of the energy products of this segment is primarily done through digital and retail sales channels. The commercial segment includes customers acquired and served under Hudson Energy, as well as brokerage services managed by Interactive Energy Group. Hudson Energy sales are made through three main channels: brokers, in-person commercial independent contractors and inside commercial sales representatives.

The chief operating decision-maker monitors the operational results of the mass market and commercial segments for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on certain non-U.S. GAAP measures such as base EBITDA, base gross margin and embedded gross margin.

Transactions between segments are in the normal course of operations and are recorded at the exchange amount.

Corporate and shared services report the costs related to management oversight of the business units, public reporting and filings, corporate governance and other shared services functions such as Human Resources, Finance and Information Technology.

The chief operating decision maker does not review the assets and liabilities for the reporting units for decision making purposes.

For the three months ended June 30, 2022:

					Corporate and
	Mass markets		Commercial		shared services		Consolidated
Revenues	$	340,577	$	230,009	$	–	$	570,586
Cost of goods sold		409,203		254,009		–		663,212
Gross margin		(68,626)		(24,000)		–		(92,626)
Administrative expenses		7,770		2,719		16,998		27,487
Selling and marketing expenses		21,589		10,883		–		32,472
Provision for expected credit loss		10,324		126		–		10,450
Depreciation and amortization		2,418		499		–		2,917
Segment loss	$	(110,727)	$	(38,227)	$	(16,998)	$	(165,952)
Interest expense								(8,488)
Reorganization costs								(19,131)
Unrealized gain on derivative instruments								222,439
Realized gain on derivative instruments								197,078
Other expense, net								232
Income tax expense								(65,564)
Net income								160,614
As at June 30, 2022
Total goodwill	$	127,522	$	–	$	–	$	127,522

For the three months ended June 30, 2021:

					Corporate and
	Mass markets		Commercial		shared services		Consolidated
Revenues	$	256,866	$	239,495	$	–	$	496,361
Cost of goods sold		208,422		222,589		–		431,011
Gross margin		48,444		16,906		–		65,350
Administrative expenses		7,425		2,709		14,509		24,643
Selling and marketing expenses		20,485		11,851		–		32,336
Provision for expected credit loss		5,158		915		–		6,073
Depreciation and amortization		2,984		661		–		3,645
Segment income (loss)	$	12,392	$	770	$	(14,509)	$	(1,347)
Interest expense								(8,831)
Reorganization costs								(16,486)
Unrealized gain on derivative instruments								236,055
Realized gain on derivative instruments								14,017
Other expense, net								(367)
Income tax benefit								793
Net income							$	223,834
As at June 30, 2021
Total goodwill	$	131,876	$	–	$	–	$	131,876

Revenue from external customers

The revenue is based on the location of the customer.

	Three months ended June 30,
	2022		2021
Canada	$	108,023	$	114,472
United States		462,563		381,889
Total	$	570,586	$	496,361